Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 5, Problem 5.3.13PA

Sub part (a):

To determine

Marginal external cost and the Pigovian tax in the cities.

Sub part (b):

To determine

Optimal tax in the large city and in the small city.

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